Despite making arrangements via
debt counselors to pay off debt, many debtors are still being harassed and intimidated by their creditors. According to the National Credit Act, being aggressive to debtors who are in the process of restructuring their debt to make payments is illegal.
In fact, bullying is a tactic used by creditors to get consumers to pay for debt that has prescribed, even though
debt counseling has helped improve the amount creditors are receiving. According to chief executive of Consumer Assist Andre Snyman, R320 million in debt is paid back to creditors each month because of debt counseling and debt restructuring.
This is more than they would have received otherwise, say creditors, 91 percent of whom say more consumers are paying or making arrangements to pay. The amount being repaid each month has grown 20 times over the last two years says Snyman. In June 2008, only a mere R11 million was being paid each month.
Debt counseling seems to be having a positive effect on creditors and debtors alike. There is no reason for creditors to harass consumers, particularly those undergoing debt restructure, but creditors continue to do it to get payment.
To counter this consumers must know their rights and hold their creditors accountable to the National Credit Act.